hourly billing doesn’t cover the value; now what?

a lesson in applying judgment.

by ed mendlowitz
202 questions and answers: managing an accounting practice

question: i helped a client get a bank loan, negotiated the rate and fees with the bank and had a tight covenant loosened. i prepared a personal financial statement, prepared a compilation statement for the business, projected financial figures and accounts receivable projections and reviewed and discussed them with the bank, and had numerous conversations with bank and client.

more: ask for what you’re worth | the top tip for reviewing tax returns | you have to start somewhere | two options for collecting past due fees | you can’t win with lowballing | nine reasons not to specialize | when board service gets tricky | yes, you have to share work papers | hiring experience vs. training inexperience | eleven ways new staffers can help bring in business | should you merge? here’s how to chart your path
goprocpa.comexclusively for pro members. log in here or 2022世界杯足球排名 today.


total time was six hours at $300 per hour. it seems it was worth a lot more to the client than $1,800. what should i bill?

answer: i suggested he prepare a detailed itemized bill for each service and to charge what he thought each separate item should be billed at.

in the end, four items were separately listed on the bill totaling $7,000. client thanked him for being so reasonable with the fees and wrote a check.

leave a reply